Monetary Policy in a World Where Money (Also) Matters
Makram El-Shagi, Sebastian Giesen
IWH Discussion Papers,
No. 6,
2012
Abstract
While the long-run relation between money and inflation as predicted by the quantity theory is well established, empirical studies of the short-run adjustment process have been inconclusive at best. The literature regarding the validity of the quantity theory within a given economy is mixed. Previous research has found support for quantity theory within a given economy by combining the P-Star, the structural VAR and the monetary aggregation literature. However, these models lack precise modelling of the short-run dynamics by ignoring interest rates as the main policy instrument. Contrarily, most New Keynesian approaches, while excellently modeling the short-run dynamics transmitted through interest rates, ignore the role of money and thus the potential mid-and long-run effects of monetary policy. We propose a parsimonious and fairly unrestrictive econometric model that allows a detailed look into the dynamics of a monetary policy shock by accounting for changes in economic equilibria, such as potential output and money demand, in a framework that allows for both monetarist and New Keynesian transmission mechanisms, while also considering the Barnett critique. While we confirm most New Keynesian findings concerning the short-run dynamics, we also find strong evidence for a substantial role of the quantity of money for price movements.
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Delineation of City Regions Based on Commuting Interrelations: The Example of Large Cities in Germany
Albrecht Kauffmann
IWH Discussion Papers,
No. 4,
2012
Abstract
The comparison of cities with regard to their economic or demographic development may yield misleading results, if solely the cities in their administrative borders are the object of consideration. Frequently, historical borders of cities neither conform to the contemporary settlement structures, nor do they consider the mutual dependencies between cities and parts of their hinterland. Therefore, it is often claimed to use city regions as objects of comparison or for the sake of urban planning. Commonly, the delineation of functional regions is based on commuting flows from the municipalities in the hinterland of the core cities directed to the cores. A municipality is regarded as belonging to a certain city region if the share of out-commuters from this municipality to the respective core in the total mass of those employees who reside in that municipality is the largest one, and if this share exceeds a certain threshold value. However, commuting flows in the opposite direction are not considered. The method presented here delineates city regions on the base of bidirectional commuting flows. Hereby, various modifications regarding the characteristics of the employment base, the possibility of overlaps of regions, the formation of polycentric city regions, and of the minimum threshold value of mutual connectivity are applied to the sample of 81 German cities with more than 100 000 inhabitants. Finally, the effects of different kinds of regionalisation on the coefficients of regional specialisation of these cities and city regions are demonstrated.
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Größenvorteile im Bereich kommunaler Leistungen – Bericht zum 4. Halleschen Kolloquium zur kommunalen Wirtschaft
Peter Haug, Albrecht Kauffmann, M. Kloss
Wirtschaft im Wandel,
No. 6,
2012
Abstract
Das Institut für Wirtschaftsforschung Halle (IWH) veranstaltet unter Federführung der Forschungsabteilung Stadtökonomik alle zwei Jahre das „Hallesche Kolloquium zur kommunalen Wirtschaft“. Vor dem Hintergrund der kommunalen Gebietsreformen in Ostdeutschland befasste sich die Veranstaltung am 24. und 25. November 2011 mit der Frage, ob insbesondere mit Bezug auf den Kommunalbereich „bigger“ notwendigerweise auch „better“ (z. B. im Sinne einer möglichst kostengünstigen Versorgung mit öffentlichen Leistungen) bedeuten muss.
Die Konferenz richtete sich dabei sowohl an Wissenschaftler als auch an Praktiker aus Politik und Verwaltung. Im Mittelpunkt standen dabei wissenschaftliche Erkenntnisse zur Effizienz des öffentlichen Sektors auf verschiedenen Ebenen. Beleuchtet wurde dieses Thema nicht nur aus der volkswirtschaftlichen, sondern auch aus der rechts- und verwaltungswissenschaftlichen Perspektive. Nach den Fachvorträgen aus den genannten Bereichen bildete eine Podiumsdiskussion mit Vertretern aus Kommunalpolitik, Kommunalverbänden und Landesverwaltung
den Abschluss der Konferenz. Insgesamt zeigte die Veranstaltung auf, dass Größe nicht alles ist bei der Gestaltung künftiger Kommunalstrukturen und Gebietsreformen alles andere als ein Allheilmittel bei mangelnder Leistungsfähigkeit (z. B. Finanzschwäche) der Kommunen sind.
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Specialization versus Diversification: Perceived Benefits of Different Incubation Models
Michael Schwartz, Christoph Hornych
International Journal of Entrepreneurship and Innovation Management,
No. 3,
2012
Abstract
Business incubator initiatives are a widespread policy instrument for the promotion of entrepreneurship, innovation and the development of new technology-based firms. Recently, there has been an increasing tendency for the more traditional diversified incubators to be superseded by incubators focusing their support elements, processes and selection criteria on firms from one specific sector, and its particular needs. Despite the increasing importance of such specialized incubators in regional innovation strategies, the question of whether they are advantageous has neither been investigated empirically nor discussed theoretically in detail. Drawing on large-scale survey data from 161 firms incubated in either diversified or specialized incubators in Germany, we investigate the benefits to firms of being part of a specialized business incubator as opposed to being part of a generalized business incubator. The investigation of the value-added contribution of specialized incubators, in particular regarding hardware components, business assistance, networking and reputation gains, reveals considerable differences compared to the more diversified incubation model.
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Does the ECB Act as a Lender of Last Resort During the Subprime Lending Crisis?: Evidence from Monetary Policy Reaction Models
Stefan Eichler, K. Hielscher
Journal of International Money and Finance,
No. 3,
2012
Abstract
We investigate whether the ECB aligns its monetary policy with financial crisis risk in EMU member countries. We find that since the outbreak of the subprime crisis the ECB has significantly increased net lending and reduced interest rates when banking and sovereign debt crisis risk in vulnerable EMU countries (Greece, Ireland, Italy, Portugal, and Spain) increases, while no significant effect is identified for the pre-crisis period and relatively tranquil EMU countries (Austria, Belgium, France, Germany, and the Netherlands). These findings suggest that the ECB acts as a Lender of Last Resort for vulnerable EMU countries.
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Vierteljährliche Konjunkturberichterstattung für das Land Sachsen-Anhalt – Die gesamtwirtschaftliche Lage im 4. Quartal 2011 –
Udo Ludwig, Brigitte Loose, Hans-Ulrich Brautzsch, Franziska Exß
Einzelveröffentlichungen,
No. 4,
2011
Abstract
Das Bruttoinlandsprodukt in Sachsen-Anhalt hat im Schlussquartal des vergangenen Jahres nach dem starken Anstieg im dritten Quartal in etwa stagniert. Die Industrie erlitt vor dem Hintergrund der konjunkturellen Eintrübung in der Welt und der Risiken im Zusammenhang mit der Schuldenkrise Umsatzverluste. So haben rückläufige Ausfuhren, zum Teil aber auch eingeschränkte private Konsumausgaben und zurückhaltende Investitionen der Unternehmen zu einer Kontraktion der Industrieproduktion geführt. Im Dienstleistungsbereich blieb die Bruttowertschöpfung unter diesem Einfluss nur etwa auf dem Niveau des Vorquartals. Das Baugewerbe legte dagegen aufgrund der milden Witterung und anhaltender Baunachfrage am Jahresende zu; sein deutlicher Zuwachs reichte, um die Rückgänge in der Industrie in etwa auszugleichen. Sachsen-Anhalt bleibt damit im vierten Quartal 2011 hinter der Entwicklung in Deutschland (0,4%) zurück. Allerdings war die konjunkturelle Grundtendenz in Sachsen-Anhalt im Vorquartal wegen der Aufholeffekte nach dem technisch bedingten Ausfall in der Mineralölverarbeitung im zweiten Quartal überzeichnet. Eine schwächere Entwicklung war somit in der Industrie zu erwarten gewesen.
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State Aid in the Enlarged European Union: Taking Stock
Jens Hölscher, Nicole Nulsch, Johannes Stephan
From Global Crisis to Economic Growth. Which Way to Take?, Vol. 1,
2012
Abstract
In the early phase of transition that started with the 1990s, Central and Eastern European Countries (CEECs) pursued economic restructuring that involved massive injections of state support. With reference to the history of state aids in centrally planned economies we display state aid practices of CEECs since full EU membership and analyse whether their industrial policies during and after transition challenged the European state aid legislation and whether these fit into the EUs strategy of ‘less but better targeted aid’. Therefore, qualitative analysis in case studies is used to supplement a quantitative description of state aid levels in East and West. Findings suggest that in recent years a level playing field across the EU has indeed emerged. In fact, the most pronounced differences in this respect are not observed between CEECs and the EU-15 but rather between Northern and Southern member states.
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